[2018] KEELRC 255 (KLR)
The court found that the dispute regarding the Collective Bargaining Agreement had been overtaken by events, as the respondent company had been wound up, all employees had been paid their severance benefits, and the company premises had been sold to a new entity. The claimant union did not provide any evidence to...
Source-derived case information.
- Citation
- [2018] KEELRC 255 (KLR)
- Parties
- Applicant: Kenya Engineering Workers Union; Respondent: Eldoret Steel Mills Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Cause 73 of 2013
- Procedural Posture
- Employment and Labour Cause / Judgment
- Outcome
- suit dismissed as overtaken by events
- Judges
- MN Nduma
- Legal Topics
- Collective Bargaining Agreements, Redundancy Benefits, Severance Pay, Recognition Agreements
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Engineering Workers Union
Applicant
Eldoret Steel Mills Limited
Respondent
Procedural Posture
Employment and Labour Cause / Judgment
Legal Issues
- 1 Whether the court should resolve the deadlocked Collective Bargaining Agreement (CBA) between the claimant union and the respondent.
- 2 Whether the economic dispute has been overtaken by events due to the winding up of the respondent company and payment of severance benefits.
- 3 Whether there is any basis to challenge the official report from the Ministry of Labour regarding the status of the respondent company.
Ratio Decidendi
The court found that the dispute regarding the Collective Bargaining Agreement had been overtaken by events, as the respondent company had been wound up, all employees had been paid their severance benefits, and the company premises had been sold to a new entity. The claimant union did not provide any evidence to contradict the official report from the Ministry of Labour, which confirmed these facts. As a result, the court held that there was no longer a live dispute to resolve and dismissed the suit without making any order as to costs.
Court Disposition
suit dismissed as overtaken by events
Orders
- The suit is dismissed with no order as to costs.
Full Case Text
Judgment text and source record
32 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT KISUMU
CAUSE NO. 73 OF 2013
(Before Hon. Justice Mathews N. Nduma)
KENYA ENGENEERING WORKERS UNION.............................CLAIMANT
VERSUS
ELDORET STEEL MILLS LIMITED.......................................RESPONDENT
J U D G M E N T
1. The suit was filed on 26th February, 2013 seeking the court to resolve an economic dispute by concluding dead locked Collective Bargaining Agreement (CBA) between the Claimant Union and the Respondent. The Claimant filed the list of demands presented to the Respondent for purposes of joint negotiations. Dispute was reported to the Ministry of Labour on 23rd April, 2012. Mrs. Chemursoi was appointed conciliator. Conciliation meetings were held on 13th, 14th and 21st August 2012 and 19th November, 2012 but there was failure to agree on items 1 to 10 of the Collective Bargaining Agreement (CBA) and a certificate of unresolved dispute was issued on 20th November, 2012.
2. The parties have a recognition agreement entered into on 2nd December, 2011.
3. The Respondent filed a reply to the claim in which the Respondent decried non-availability of raw materials to sustain production. The Respondent made counter offers as follows:-
15% basic salary increment to the 25% proposed by the Claimant.
Respondent offered Kshs.500 leave travelling allowance to the 3,000 proposed by the union for the 1st year and Kshs.3,500 for the 2nd year.
The Respondent offered Kshs.100 for breakfast to 300 proposed; Kshs.150 for lunch to 400 proposed; Kshs.150 for dinner to 500 proposed; Kshs.300 overnight stop to 1,200 proposed.
4. Respondent further provided one month salary in lieu of redundancy notice; 15 days severance pay for each completed year of service and declined to guarantee alternative employment and transport.
5. With regard to transfer to another town, the Respondent offered Kshs.5,000 and to provide transport in addition.
6. The Respondent declined to offer milk to production employees.
7. The Respondent further proposed effective date to be 1st January 2012.
8. The CPMU, Ministry of Labour visited the Respondent and received pleadings by the parties and prepared Economic Investigation Report to assist the court in the determination of the suit.
9. CPMU informed the court in its report that the Respondent Company was wound up on 4th June 2014 and all the 127 workers were paid their severance benefits on the same day and that union officials were present on the day the company was wound up and are aware of the situation.
10. The Respondent company was sold do Western Steel Mills Limited at a cost of 185 Million Kenyan Shillings and the new occupier took possession of the company premises.
11. The Claimant union was unable to present to the court evidence contrary to the findings of the Ministry of Labour.
In any event official reports from Government are presumed to be a reflection of true status unless the contrary has been proved.
12. It is the court’s considered view and finding that this suit has been overtaken by events and the same is dismissed with no order as to costs.
Judgment Dated, Signed and delivered this 6th day of December, 2018
Mathews N. Nduma
Judge
Appearances
Mr. Omollo for Claimant Union
Mr. Peter Mulwa for CPMU
Mr. Sutel for Respondent
Chrispo – Court Clerk